The Apple TV could potentially be getting long-awaited game support in an upcoming software update according to a recent report from iLounge. The update could include both Bluetooth controller support and an Apple TV-based App Store to allow users to download games in the first place. The following was mentioned in the report regarding the matter:

iLounge has heard from reliable industry sources that Apple TV will soon be getting proper game support in an update, likely to come in March or earlier. We’ve heard that developers are currently working on Bluetooth controller options, and it’s expected that games could be downloaded directly to the Apple TV rather than relying on another iOS device as an intermediary.

The concept of turning the Apple TV into a game console device with an App Store has been around for quite some time. Rumors have dated back years suggesting that such a feature was in the works. Just last year, MG Siegler wrote that Apple appeared to be moving closer to leveraging the Apple TV for gaming in the living room. Jobs himself also previously stated an App Store for the Apple TV was a possibility “when the time is right.”

Apple and third-party hardware makers recently began shipping iOS 7 game controller for iPhones but they may have been poorly received because of build quality issues and high price tags. The folks over at iLounge have shared fairly accurate information on Apple’s product plans several times in the pat suggesting that the publication does indeed have reliable sources with access to Apple’s supply chain. Ultimately, we’ll have to just wait and see.

Where are those games going to download to? They would have to be cloud based, primarily.

Thats what I was going to say. There is no storage or USB so nowhere to download the games.
Maybe they will bring out a ATV4 which will have some storage.
OR does the ATV3 have storage we dont know about? Enough to download some games?

ATV2/3's only have 8GB of Flash and it's not user accessible. There's barely enough Flash for the ATV iOS Firmware!!!

Also be careful if you Jailbreak your ATV2 and pay attention to Free Space because installing Packages with Seas0nPass & ATV Flash Black it's possible to end up with 0 Bytes Available and crash your ATV2 which requires a clean Restore!!!

ATV2 JB is a must have if only for a fast and simple way to watch a DVD ISO on your ATV2 from a network share

ATV2/3's only have 8GB of Flash and it's not user accessible. There's barely enough Flash for the ATV iOS Firmware!!!

Also be careful if you Jailbreak your ATV2 and pay attention to Free Space because installing Packages with Seas0nPass & ATV Flash Black it's possible to end up with 0 Bytes Available and crash your ATV2 which requires a clean Restore!!!

ATV2 JB is a must have if only for a fast and simple way to watch a DVD ISO on your ATV2 from a network share

ATV2/3's only have 8GB of Flash and it's not user accessible. There's barely enough Flash for the ATV iOS Firmware!!!

Also be careful if you Jailbreak your ATV2 and pay attention to Free Space because installing Packages with Seas0nPass & ATV Flash Black it's possible to end up with 0 Bytes Available and crash your ATV2 which requires a clean Restore!!!

ATV2 JB is a must have if only for a fast and simple way to watch a DVD ISO on your ATV2 from a network share

That's why I own a WDTV Live. It's got 2 USB ports and can access my NAS and PCs so unlimited storage.